The Big Mac Index is an informal economic tool created by The Economist magazine to measure relative purchasing power parity between different currencies.
It compares the prices of a Big Mac hamburger in various countries to assess whether exchange rates are at their “correct” level.If the price of a Big Mac is higher in one country than in another, it suggests that the currency of the former is overvalued.
The index provides a simple way to gauge currency valuation and the cost of living differences across nations.
